6.00 points Martin Clothing Company is a retail company that sells hiking and ot

Question

6.00 points Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year Cash Month Sales Purchases Paid May 94,000 $ 66,000 24,000 27,000 123000113.00030.800 123,000 133,000 126,000 73,00036,500 30,800 113,000 August The majority of Martin's sales (65 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 30 percent are collected in the month of sale and 70 percent are collected in the following month. All of Martin's purchases are on account with 60 percent paid in the month of purchase and 40 percent paid the following month. 1. Deternine budgeted cash collections for July and August. (Round your intermediate calculations and final answers to nearest whole dollar.) July August Budgeted Cash Collections 2. Determine budgeted cash payments for July and August July August Budgeted Cash Payments Hints References eBook & Resources C2018 McGrew-Hill Educetion. All nghts reserved

Explanation / Answer

Computation of Cash Receipts from Sales Amount Montly Sales COLLECTIONS Monthly Sales May June July August May Cash Sales @ 65% 61100 61100 Credit Sales 35% (30% of Credit Sales in Same Month and 70% in Following month) 32900 94000 9870 23030 June Cash Sales @ 65% 79950 79950 Credit Sales 35% (30% of Credit Sales in Same Month and 70% in Following month) 43050 123000 12915 30135 July Cash Sales @ 65% 86450 86450 Credit Sales 35% (30% of Credit Sales in Same Month and 70% in Following month) 46550 133000 13965 32585 August Cash Sales @ 65% 81900 81900 Credit Sales 35% (30% of Credit Sales in Same Month and 70% in Following month) 44100 126000 13230 Cash Collection from Sales 476000 70970 115895 130550 127715 Budgeted Cash Collection for July = $ 130550 and August = $ 127715 Budgeted Cash Payments on Account of Purchase Montly Purchase Payments Monthly Purchase   May June July August May Credit Purchases (60% of Credit Purchase in Same Month and 40 % in Following month) 66000 39600 26400 June Credit Purchases (60% of Credit Purchase in Same Month and 40 % in Following month) 93000 55800 37200 July Credit Purchases (60% of Credit Purchase in Same Month and 40 % in Following month) 113000 67800 45200 August Credit Purchases (60% of Credit Purchase in Same Month and 40 % in Following month) 73000 43800 Cash Payments for Purchase 345000 39600 82200 105000 89000 Total Cash Payments for July & AUG July August Cash Payments for Purchase 105000 89000 Cash Expenses Paid 36500 30800 Total Cash Payments 141500 119800

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